As it tries to claw itself out of bankruptcy and repay $53 million to an impatient lender, the owner of the Auraria Student Lofts has hired Colliers International to market the property.
Craig Stack, an experienced multifamily broker, will head up the effort. Colliers will receive a 0.5 percent commission if it can sell the lofts, U.S. Bankruptcy Court records show.
The Auraria Student Lofts is a 14-story, 125-unit apartment complex atop the Curtis Hotel at 1051 14th St. Its owners, Nelson Partners, have been accused of neglecting it. Its lender, Fortress Capital, has tried and failed to convince a bankruptcy judge to let it foreclose.
Judge Kimberley Tyson instead ruled last month that Nelson can keep control of the property and restructure in a way that lets it repay Fortress and a few smaller creditors.
Key to Nelson’s restructuring plan is selling the property. So, on Nov. 30, Tyson approved Nelson’s request to hire Stack and Colliers as brokers for the Auraria Student Lofts.
Lawyers for Nelson and Fortress have debated in Tyson’s courtroom how much money the property is worth. It was purchased for $60 million in 2019, improvements have been made, and property values have increased in Denver since 2019, Nelson has said.
Fortress, on the other hand, has alleged the property is in decline and could be worth less than the $57 million that lenders are owed; $53 million of that is owed to Fortress.
Stack works out of Colliers’ Denver office. His recent deals include the $29.3 million sale of the 143-unit Windsor Court apartment complex in Aurora and the $23.5 million sale of an 80-unit portfolio to Denver-based RedPeak.
He did not respond to calls and emails seeking comment on the Auraria Student Lofts.